Lessons from The Flex Series: 5 steps to getting fitter finances

The road to financial fitness can be challenging, but it’s not impossible. In fact, anyone can do it — including yourself. Just like hitting the gym, what’s important is having a clear goal, a manageable (and enjoyable!) routine, and the right mindset.

Thanks to The Flex Series by NEXT, there’s no need to search far and wide for tips and tricks on getting started — we’ve got it all laid out for you here. Ready to level up your financial game? Here are five lessons from The Flex Series to help you get fitter finances.

Lesson 1: Assess you financial health

The first step to getting fitter finances is getting a check-up. And no, this step doesn’t involve a doctor, but it does involve a series of tests on your goals, budgets, and your readiness to take on financial emergencies.

• Set goals.

• Weigh your budget.

• Determine whether your emergency fund can take on unexpected expenses.

Lesson 2: Master the art of balance.

Balance your needs, wants, and goals. To do this, you strengthen the core of your budget: your savings. Beef it up so you have a comfortable cushion to land on in emergencies.

You may allocate 20% of your income to savings, 30% for wants, and 50% for needs. Once you master this balance, you can start being more flexible and increase your savings to get to your goals faster.

Lesson 3: Take steps to make saving a bit.

Once you find your balance, it’s time to level-up your saving! In the third episode of the Flex Series, we were taught three habit-forming tips to start with:

• Allocate a portion of your monthly income and put it straight into your savings account. 

• Read up on the different types of investments and see what works best for your lifestyle.

• Make consistent deposits to your savings and increase the amount when you can.

Lesson 4: To start investing, find your style.

Finding your investment is just like learning to dance — there are different beats for different personalities.

• The conservative investor: tiptoes around risk and prefers stable investments. But, a stable investment usually means more modest returns.

• The moderately aggressive investor: strikes a balance between capital growth and income. They go for riskier investments but ground them with more stable investments.

• The aggressive investor: makes big moves by putting their money in risky investments with the highest potential returns. The risk can make them stumble, but can get the highest gains.

Lesson 5: Loans can provide a boost in reaching your financial goals.

Some people shy away from loans because they don’t want to get tangled up in debt. But loans can help you reach your goals faster. Plus, loans can make major expenses lsuch as a car, a house, or a business more manageable by dividing them into smaller monthly payments. In the fifth episode of The Flex Series, we were taught three steps to get started on a loan.

1. Assess the kind of loan you are getting — one that aligns with your financial goals.

2. Decide on your payment scheme. This dictates how much and for how long you are paying off your loan.

3. Coordinate your budget so you don’t miss a payment!

Getting on the road to financial fitness is not as daunting as you think. Just remember to keep your head in the game and celebrate your wins. And with these steps, you’ll be on your way to flexing your financial muscles and reaching your goals in no time. 

Want to learn more about investing, saving strategies, and budgeting hacks? Click here to check out more content from The Program by NEXT.